Page 44 - Plastics News October 2021

BUSINESS NEwS

BPCL Privatisation Not To Impact Upcoming Saudi Arabia's SIIG And

Petrochemical Park Says Minister Petrochem Plan Merger

audi Industrial Investment Group
S(SIIG) (2250.SE) and the National
Petrochemical Company (Petrochem)
(2002.SE )has recently signed a non-
binding agreement on a proposed
merger. According to report the deal
would involve a share exchange offer
from SIIG to acquire the 50% of
Petrochem it does not already own,
the companies said in separate bourse
statements.SIIG would pay Petrochem's
shareholders by issuing new shares
in SIIG and Petrochem would be
he Kerala government on Tuesday environmental clearance, he said delisted.Petrochem's shareholders
Tindicated that the Centre's plan to during the question hour. 'KINFRA would receive 1.27 shares in SIIG in
privatise Bharat Petroleum Corporation has prepared a Rs 300 crore project exchange for each share they own in
Limited (BPCL) would not adversely report for the development of basic Petrochem.At a market price of 39.9
impact the interests of its ambitious infrastructure. The tender proceedings riyals per share of SIIG and 49.7 riyals
Petrochemical park, being set up in related to the infrastructure development for Petrochem, the exchange ratio
Kochi.Industries Minister P Rajeev and for the selection of a project implies a 2% premium for Petrochem
told the state Assembly that the Kerala management consultant are at the final shareholders, Arqaam Capital said
Industrial Infrastructure Development stages,'' he said. The park, coming up in a note.The potential merger will
Corporation (KINFRA) and the public on 481.79 acres of land acquired by the simplify shareholding structure and
sector oil company had signed an MoU state government from Fertilisers and sharpen focus on growth capital
last month to ensure availability of raw Chemicals Travancore (FACT), a central
materials to the enterprises launching public sector undertaking, is being set
their business in the upcoming park. up by the Industries Department in
''The entrepreneurs, who launch their collaboration with Bharat Petroleum
business in the proposed park, are Corporation Limited (BPCL), official
going to depend on the BPCL for the sources said. The KINFRA would
required raw materials. The KINFRA provide the basic facilities at the park,
and the BPCL entered into an MoU including supply of 12 million litres
on September 24 this year. With this, of water per day, 11 and 33 kilowatts
the availability of raw materials can be of electricity, pollution control plant,
ensured to the enterprises without any GAIL gas pipeline and waste treatment expenditure, it said.SIIG has appointed
hurdle,'' he said. The Minister also said system, they said.The park is expected HSBC Saudi Arabia as its financial
the Rs 300 crore-Petrochemical Park to be completed within 30 months. adviser while Petrochem is working
is expected to boost the expansion of Nearly 229 acres will be available in with GIB Capital.The non-binding
Kochi Oil Refinery under the BPCL the petrochemical park for industrial memorandum of understanding is
and thus pave way for the formation ventures and at present, 171 acres has subject to the companies reaching a
of a cluster of petrochemical related been allotted on lease for development final agreement on terms of the deal.
industries making use of raw materials of BPCL, while 33 per cent of the land The two firms began talks last year
from there. The KINFRA has prepared will be retained for establishment of a over the merger, which would mark
its detailed project report and the green belt, as per the Union Ministry of further consolidation in the Saudi
Centre has accorded it the necessary Environment guidelines. petrochemicals sector.

44 PLASTICS NEWS OCTOBER 2021 45 PLASTICS NEWS OCTOBER 2021